Canada Revenue Agency: Milton Businessman Fined $95,000 for Tax Evasion

BURLINGTON, ONTARIO--(Marketwire - March 2, 2011) - The Canada Revenue Agency (CRA) announced today that Christian Dombkowski of Milton, Ontario, recently pleaded guilty in the Ontario Court of Justice in Burlington, to one count of tax evasion, and was fined $95,000. The fine represents 100% of the taxes evaded, resulting in a total of $190,000 in fines and federal taxes owing.

A CRA investigation revealed that during 2002 to 2004, Mr. Dombkowski carried on business as a sole proprietor, providing sales and installation services. Mr. Dombkowski was paid commission on sales, in addition to an installation fee, on sold products. Mr. Dombkowski failed to report taxable income in the approximate amount of $380,000.

The court heard that Mr. Dombkowski deliberately attempted to mislead and conceal information from a CRA auditor in the course of a routine audit and that he knowingly and with intent made false statements on his 2002, 2003 and 2004 income tax returns by reporting only a partial amount of income he earned during that period. 

The preceding information was obtained from the court records.

When individuals are convicted of income tax and GST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

Individuals who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They will not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the Canada Revenue Agency (CRA) against them. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.